>Wal-Mart Continues its Aggressiveness

October 19, 2009

>Craig Johnson, our Consumer chair, believes that recent moves by Wal-Mart to demonstrate its desire to continue its aggressiveness by seeking new avenues of competition.

Recently the company started to

  • sell dozens of toys for $10 each
  • offer a wireless service priced below competitors
  • cut prices on 10 highly anticipated hardcover books to $10 on Walmart.com

The third action prompted a price war with Amazon.

After both retailers then cut their prices on those books to $9, on Friday Walmart.com shaved a penny off that price to come in at $8.99 each. Walmart.com has threatened to drop prices even further. The company said it would adjust its pricing as needed to ensure it offered the lowest prices on its top 10 pre-selling books.

Craig believes that this is a demonstration that they are “more aggressive and they will cede no ground to the competition, whether it’s the Best Buy’s of the world, or Toys “R” Us or … Amazon.” He is of the opinion that “any competitor that underestimates Wal-Mart, does so at its own peril.”

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